Luxury vehicle manufacturers have hit out at the move to hike cess on large cars and SUVs to 25 per cent, saying it was against the spirit of liberal market dynamics and would affect future plans of expansion under the Make in India initiative.

Every developed country has a strong automotive industry and India must look to strengthen the sector, which today accounts for nearly 50 per cent of the country's manufacturing GDP, says auto industry body SIAM.

Automobile firms criticised the government's "hurry to implement the hike in cess" saying a review could have been taken after six months when impact of GST (Goods and Services Tax) would have been clearer.

The third largest private sector lender's executive director Rajiv Anand said many Indians are aspirational of owning iconic brands like Harley Davidson and Triumph which made the bank launch the offer.